Li Laisi Talk About The Development Of China'S Economy

In fact, we can see in the global competition between price and quality that if we decide to compete in price, someone will provide lower prices to enhance their dominance in other places. Therefore, we need to pay more attention to quality, soft power and brand.

Recently, Dr. Li Laisi was invited by the opening ceremony of the "2015 Chinese and Western culture series forum" at the South Bank University School of Chinese medicine, South Bank University.

For 40 minutes, Li Laisi emphasized the importance of "positioning" repeatedly, and used various imagery metaphors to express his analysis and observation of the world economy.

The following is a record of the speech:

In the next twenty years, people will see the strongest world economy in history.

Soft power and hard power drive the world economy separately, presenting a bigger cake to every major economy.

At the beginning of this century, the total world economy was 32 trillion dollars; before the financial crisis, it was US $62 trillion; by the end of this year, it might have reached 82 trillion.

So you see, despite the financial crisis, although the United Kingdom and the United States and Europe have been in the worst economic recession of the century, the economic development of the world is still moving forward, and its main driving force is the development of emerging markets including China.

The key to the cake is how to locate itself.

We notice that the cake in the west is smaller than the world economy, but the absolute size is bigger.

At present, 157 of the top 600 cities in the world are in western countries. After 20 years, only 20 western cities can be ranked among them, others in Asia.

How to eat cake is also very important. People gradually realize the importance of morality.

In the famous wealth of nations, Adam, the father of western economics, referred to the invisible hand and the market's role in the economy.

In another book which is not so well known, the theory of moral sentiments, he refers to the "visible hand" - the role of morality and ethics in business.

The lesson of the financial crisis is that the financial industry must strengthen moral restraint.

So the next question is how to add some seasonings to make cakes better. I think in China, we need to solve environmental problems and control debts in the West.

All these are caused by neglecting social responsibilities in economic development.

I have three metaphors for China's economic situation.

The first is the Robinhood economy.

Robinhood is the image of robbing the rich and helping the poor in the western fairy tales.

China's huge trade surplus with the United States and Europe has led some to see it as a competitive threat.

But at the same time, China once had a huge trade deficit with Asian countries, which made people feel that China was Robinhood who "rob the rich and help the poor".

Another metaphor for China's economy is Goldilocks.

Goldilocks, a little girl in Green's fairy tales, stole the gruel of the forest bear. In the three bowls of hot, cold and cold, she chose a cold bowl.

China's economy can be said to be neither too hot nor too cold.

Too hot, which means that the real estate overheating, inflation and other serious problems.

If it is too cold, the unemployment rate will increase and social problems will increase.

So far, however,

The economy has been well handled and the Chinese economy has shown a moderate and unyielding state. Of course, China's statistics are always consistent with the expectations of the high level, and it is easy for people to doubt the authenticity of the data.

The third analogy is superman.

China is a superhuman economy.

China's economy is rising, but it is also accompanied by potential crises.

Like Superman, Superman needs krypton stone to get energy.

China also needs to solve environmental problems and resources.

I advocate a positive view of China. People who are pessimistic about China are like looking at China with a timer.

You can't use timer to understand time.

Similarly, focusing on the negative aspects of China is like staring at the time of the timer. You will not see the positive side and miss the opportunity.

China hopes to rise peacefully, do not want to arouse the hostility of other countries and regard China as a threat.

China's per capita income is low and its population is large. Many people are old before they get rich. The one-child policy has led to the aging society and many social problems, but the middle income class is also rising.

It is relatively easy to get into middle-income countries from a well-off society, and it is difficult to get from middle income to high income.

Great changes have taken place in China's total economic output, but power is still highly concentrated in Beijing. There are many imbalances in managing such a large economy.

Urban and rural areas, coastal and inland areas, imbalance of educational resources, imbalance of social welfare, environmental problems and internationalization.

Shadow banking

It is difficult to estimate and difficult to control.

China's leaders say that even at the current rate of 7%, the total economic volume is equivalent to 10% of the total ten years ago.

I believe that a smooth pition from 10% to 7% depends on the support of a sound social system, otherwise it will waver.

My judgement is that China's economy may be stable, but the running curve is not smooth.

At present, China should shift from export drive to domestic demand drive.

And in 12th Five-Year, seven strategic emerging industries were listed: energy conservation, environmental protection, information technology, biological industry, high-end equipment, [1.36%] manufacturing, new energy, new materials and new energy vehicle industry.

Chinese leaders mentioned the new Silk Road and opened up new investment opportunities along the ancient Silk Road.

China wants to find high quality assets, including brands and strategic materials.

China was very poor in the 70s of last century, and now China's capital has entered many high value-added industries, including electronics, real estate, nuclear energy and other very advanced industries.

This year is the 800th anniversary commemoration of the birth of the Great Charter of the United Kingdom. A 800 year statute still has an impact on Britain's soft power.

Britain has a strong social system, higher education, innovation and brand.

It is unwise to sell everything, nor will Britain do that.

Last year, China indicated that it could invest in the UK, including manufacturing, infrastructure, biological science, electronics and professional services.

Looking at the world, Britain needs more investment to boost infrastructure in the UK.

In 20 to 25 years, the population base of Britain will be greater than that of Germany.

If we see that the various industries in the UK are not balanced, some industries are highly paid and highly efficient, while others are not.

In 20-25, Britain may become the largest economy in Western Europe.

Population growth may bring challenges, including housing, pportation and opportunities, including the medical industry.

There are 20 cities in China that want to replicate the model of Shanghai free trade area. Britain is determined to help China, its purpose is not in sight, but for the long-term and global interests of Britain.